Balancing Dividends and Fundamentals: The Case of NYSE:PFE.

PFIZER INC (NYSE:PFE) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:PFE demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Looking at the Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:PFE was assigned a score of 8 for dividend:

• With a Yearly Dividend Yield of 5.11%, PFE is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 3.90, PFE pays a better dividend. On top of this PFE pays more dividend than 97.62% of the companies listed in the same industry.
• PFE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.68.
• PFE has been paying a dividend for at least 10 years, so it has a reliable track record.
• PFE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:PFE has earned a 5 out of 10:

• PFE's Altman-Z score of 2.70 is fine compared to the rest of the industry. PFE outperforms 72.86% of its industry peers.
• PFE has a better Debt to FCF ratio (6.13) than 84.76% of its industry peers.
• A Current Ratio of 2.12 indicates that PFE has no problem at all paying its short term obligations.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:PFE was assigned a score of 8 for profitability:

• With an excellent Return On Assets value of 9.75%, PFE belongs to the best of the industry, outperforming 90.95% of the companies in the same industry.
• PFE has a better Return On Equity (21.68%) than 91.90% of its industry peers.
• PFE has a better Return On Invested Capital (11.96%) than 90.00% of its industry peers.
• The 3 year average ROIC (16.16%) for PFE is well above the current ROIC(11.96%). The reason for the recent decline needs to be investigated.
• PFE's Profit Margin of 27.55% is amongst the best of the industry. PFE outperforms 94.76% of its industry peers.
• Looking at the Operating Margin, with a value of 31.21%, PFE belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
• PFE's Operating Margin has improved in the last couple of years.
• PFE has a Gross Margin of 68.78%. This is in the better half of the industry: PFE outperforms 74.29% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of PFE for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.